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Clifford Chance advises on large scale green hydrogen and ammonia production project in Oman

15 January 2024

Clifford Chance advises on large scale green hydrogen and ammonia production project in Oman

Global Law Firm Clifford Chance has advised Marubeni Corporation, Dutco Overseas Limited (a subsidiary of Dutco Group), as part of a consortium also consisting of OQ Alternative Energy LLC and Samsung C&T Corporation on agreements with Sultanate of Oman owned Hydrom Oman SPC, relating to plans to develop large scale green hydrogen and ammonia production facilities in Salalah, Oman.

The SalalaH2 project is set to establish state-of-the-art facilities for the production of green hydrogen and green ammonia, leveraging indigenous wind and solar resources. The primary objective is to provide ammonia and hydrogen to both international and domestic end users. Aligned with the Sultanate of Oman's strategic goals, the project plays a pivotal role in contributing to the nation's vision of achieving one million tons of green hydrogen production anticipating by the year 2030. Oman's green hydrogen program strategically capitalizes on the region's optimal wind and solar production conditions, complemented by its well-established port and industrial infrastructure.

The cross-border Clifford Chance team consisted of partners Richard Parris, and Mohamed Hamra-Krouha, senior associate Anthony Santangeli and associates Kirsty Jones and Miguel Domingo.

Richard Parris commented: "We are very proud to have supported the outstanding sponsors on a pathfinder deal for the emerging green hydrogen economy. After a period of hydrogen market and price discovery led by creative sponsors, industry and governments, 2023 has been a year of big progress for hydrogen projects. As regulatory regimes and offtake procurement models in key European and Asian demand centres become clearer, we expect to see more and more projects come to fruition over the short to medium term".

Clifford Chance has a market leading, globally integrated clean hydrogen team which is led by Tony Giustini, the senior partner of the firm's Worldwide Projects Group. The team is engaged on hydrogen mandates across the globe ranging from large scale production and export projects to cluster projects, to green steel to projects relating to hydrogen storage and transportation.

Clifford Chance worked together with Omani law firm MAQ Legal on this matter.